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Bloomberg: Shell BP ‘mega merger’ unlikely

EXTRACT: Royal Dutch Shell Plc (RDSA LN): A “mega merger” between any of the world’s biggest oil companies, such as BP Plc and Shell, is unlikely because it wouldn’t deliver sought-after gains in productivity or cost savings, researcher Sanford C. Bernstein & Co. analysts Neil McMahon and Oswald Clint in London said in a report today. Shell stock fell 26 pence, or 1.2 percent, to 2065.

Bloomberg Headline: GlaxoSmithKline, Ryanair, Cadbury: U.K., Irish Equity Preview

By Trista Kelley

July 12 (Bloomberg) — The following stocks may rise or fall in U.K. and Irish markets today. Stock symbols are in parentheses and prices are from yesterday’s market close.

The benchmark FTSE 100 Index fell 15.80, or 0.2 percent, to close at 6615.10 in London. The FTSE All-Share Index declined 9.83, or 0.3 percent, to 3413.09.

Ireland’s ISEQ Index dropped 110.84, or 1.9 percent, to 9173.33.

U.K. Companies:

Cadbury Schweppes Plc (CBRY LN): The world’s biggest confectionery company bought a Florida bottler to expand distribution in the southeastern U.S. Southeast-Atlantic Beverage Corp. is the sixth bottler that Cadbury will combine with its Plano, Texas-based Americas division, which formed in April 2006. The shares lost 10 pence, or 1.5 percent, to 662.

GlaxoSmithKline Plc (GSK LN): Takeda Pharmaceutical Co.’s Actos diabetes pill may not have the heart-attack risk linked to Glaxo’s similar drug, Avandia. An analysis of Takeda studies, scheduled for completion this month, may show Actos is free of the cardiac side effect and could catapult the Takeda drug past Avandia as the world’s best-selling oral diabetes medicine, analysts say.

A report by the Cleveland Clinic in May said Avandia may increase the chances of heart attacks by 43 percent.

Separately, Glaxo and Johnson & Johnson are among 20 drugmakers criticizing the U.K. for relying too heavily on a medicine’s costs rather than benefits when deciding which treatments to fund. Glaxo shares fell 9 pence, or 0.7 percent, to 1265.

London Stock Exchange Plc (LSE LN): The LSE clashed with Nasdaq Stock Market Inc., its biggest shareholder, at today’s annual investor meeting as the U.S. exchange voted against two resolutions to raise capital, causing them to fail.

Separately, the LSE is planning to introduce a market for private equity, property and hedge funds, called the Specialist Fund Market, the Financial Times reported, citing information from the exchange.

LSE shares rose 3 pence, or 0.2 percent, to 1366.

Royal Dutch Shell Plc (RDSA LN): A “mega merger” between any of the world’s biggest oil companies, such as BP Plc and Shell, is unlikely because it wouldn’t deliver sought-after gains in productivity or cost savings, researcher Sanford C. Bernstein & Co. analysts Neil McMahon and Oswald Clint in London said in a report today. Shell stock fell 26 pence, or 1.2 percent, to 2065.

Irish companies:

Ryanair Holdings Plc (RYA ID): Europe’s biggest low-fare airline, called on Ireland’s aviation regulator to overturn a decision to coordinate takeoffs and landings at Dublin’s airport, in its latest complaint about the airfield.

The Dublin Airport Authority “lied” to consultants hired by the Commission for Aviation to examine the proposed 850 million-euro ($1.17 billion) expansion, Jim Callaghan, Ryanair’s head of regulatory affairs, said. The shares fell 0.4 percent to 5.10 euros.

To contact the reporter on this story: Trista Kelley in London at [email protected]

Last Updated: July 11, 2007 21:26 EDT

http://www.bloomberg.com/apps/news?pid=20601102&sid=aRQW7f35X19Y&refer=uk

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